DuPont Decomposition
Why does ENGINERSIN earn its ROE?
Breaking down Return on Equity into profitability, efficiency, and leverage.
ROE = Net Margin × Asset Turnover × Equity Multiplier
21.7% = 18.8% × 0.59 × 1.97
Latest: FY2025
Profitability
Net Margin
18.8%
21.6% →18.8%
How much profit per ₹ of revenue
Efficiency
Asset Turnover
0.59x
0.20x →0.59x
Revenue per ₹ of assets
Leverage
Equity Multiplier
1.97x
2.24x →1.97x
Assets funded by equity vs debt
Trend Analysis
ROE improved by 12.0 pp over 3 years. Driven by net margin declining (21.6% → 18.8%), asset turnover improving (0.20x → 0.59x), leverage falling (2.24x → 1.97x).
Historical Decomposition
Last 3 years
| Year | Revenue | PAT | Net Margin | Asset TO | Leverage | ROE |
|---|---|---|---|---|---|---|
| FY2023 | ₹0Cr | ₹0Cr | 21.6% | 0.20 | 2.24 | 9.7% |
| FY2024 | ₹0Cr | ₹0Cr | 14.3% | 0.17 | 2.10 | 5.1% |
| FY2025 | ₹0Cr | ₹0Cr | 18.8% | 0.59 | 1.97 | 21.7% |
How to read DuPont
- • Rising ROE from margin = pricing power, operational improvement (good)
- • Rising ROE from turnover = better asset utilization (good)
- • Rising ROE from leverage = more debt, amplified risk (caution)
- • Falling ROE across all three = structural deterioration (red flag)
DuPont decomposition from audited annual financials. Factual analysis, not investment advice.